Great Companies, Falling Stocks: Netflix, Meta & the Art of Long-Term Investing

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Great companies don't always make great stocks—at least in the short term. Netflix (NFLX) and Meta (META) are delivering impressive growth, yet their share prices are under pressure. Is Wall Street missing the bigger picture?

On this episode of the Long Term Investing Podcast, Barry Schwartz and Ernest Wong of Baskin Wealth Management break down what's driving the selloffs in Netflix and Meta. They examine Netflix's declining U.S. engagement, growing competition from YouTube, and whether its international expansion and live sports strategy can reignite investor enthusiasm. They also discuss Meta's ambitious AI investments, the rapid growth of its new Muse platform, and Mark Zuckerberg's plans to maintain control of the company.

Plus, why are some of the market's most reliable businesses being overlooked? Barry and Ernest discuss Waste Connections (WCN) and FirstService (FSV), two long-term holdings that have faced investor skepticism despite resilient fundamentals. From pricing power and acquisitions to share buybacks and disciplined capital allocation, they explain why patience can be one of the most valuable tools in an investor's portfolio.

The bottom line: Stock prices are opinions. Fundamentals are facts. And for long-term investors, knowing the difference is everything.

Timestamps 0:00 Trailer & Intro: Meta, Netflix, Waste Connections and First Service 1:42 Kawhi Leonard and the Raptors 3:47 Are publicly traded sports teams good investments? 4:27 Netflix: stock under pressure and the YouTube narrative 5:37 Is Netflix engagement really declining? 7:04 Netflix's leadership shake-up 7:40 The Warner Bros. bid and the stock drop 9:43 Putting Netflix's U.S. engagement issue in perspective 11:19 Is Netflix a utility? Why engagement still matters 12:38 Netflix's international content strategy 15:32 Why the US engagement problem is fixable 16:57 Disney licensing deals and channel services 20:19 Live sports and the platform pivot 21:29 Netflix valuation vs. the S&P 500 22:31 Meta: why the stock fell after earnings 25:09 Meta's Muse AI agent and how it makes money 28:33 Meta's new non-voting share class 32:03 What Netflix and Meta have in common 32:55 Waste Connections: the exclusive-market model 38:18 First Service: property management, roofing and brands 42:56 First Service buybacks and capital allocation 45:57 Why boring compounders lagged this year 46:53 Legal disclaimer

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DISCLAIMERS This podcast is for informational purposes only and any forecast on the economy, markets or individual securities should not be viewed as investment advice, a recommendation or an offer or solicitation to buy or sell any securities. Clients of Baskin Wealth Management and the speakers on this podcast may own shares of the companies discussed. Information on this podcast is current as of the time of production and is subject to change. If you have any questions or would like to subscribe to these podcasts, visit our website at baskinwealth.com.